How to compare society contractor quotations fairly
04 Nov 2026
Quick answer
Expense approvals: A housing society expense approval is only as good as the records that link it together. Before money leaves the society's account, someone should be able to show the need, the quotation, who decided and under what authority, what was ordered, that the work was done, and the payment that followed. Each record should carry a reference to the one before it.
What the law and by-laws decide
The West Bengal Co-operative Societies Act 2006 makes the general body the final authority of the society (s.28). The AGM approves the annual budget (s.29(5)) and considers the audit report, and accounts must be audited every year (s.97). The Rules require the society to keep minute books, a cash book, receipt books and vouchers, and a general ledger (Rule 67).
The Act and Rules as checked for this article do not set rupee limits for who may approve what in a housing society. That is for your by-laws and general body decisions. Write the limits down in one place, approve them, and quote them on vouchers.
An approval matrix you can adapt
Example only. The limits below are invented to show the structure; your by-laws and general body decide the real ones.
| Type of spend (example) | Who approves | Record required |
|---|---|---|
| Routine, within budget, up to Rs 5,000 | Secretary or treasurer | Bill and voucher with approver's initials |
| Within budget, Rs 5,001 to Rs 50,000 | Two office-bearers, reported to the next Board meeting | At least two quotations where practical; approval note |
| Above Rs 50,000 or outside the budget head | Board resolution | Comparison of quotations; minute reference |
| Outside the approved budget overall, or a levy on members | General body | Notice, resolution and minutes |
| Emergency to prevent damage or risk | Any two office-bearers, ratified by the Board | Reason it could not wait; photos; bill |
The six linked records
- Need. A complaint, inspection note or service report that says what is wrong. On COOPMAN this can be the member's request.
- Quotation. One or more priced offers for the same scope. For comparing them, see how to compare contractor quotations fairly.
- Decision. Who approved, the amount, the vendor, and the authority used (limit or minute reference).
- Work order. A short letter or message to the vendor confirming scope, price, timing and payment terms.
- Completion. A note from the caretaker or an office-bearer that the work was done, with a date and, where useful, photos.
- Payment. The bank transfer or cheque, recorded on a numbered voucher that lists references 1 to 5.
Worked example: a pump motor repair
Example only. Details and amounts are invented.
An auditor, or any member using their inspection right under Rule 67A, can follow that payment from the bank line back to the leaking tank in a few minutes. Audit preparation is covered in organising vouchers, ledgers and bank records.
Checklist before releasing any payment
- The bill matches the work order in scope and amount.
- The approver had authority for this amount and budget head.
- Any relationship between a committee member and the vendor was declared.
- Completion is confirmed by someone other than the vendor.
- Advance payments, if any, were approved and are set off on the final bill.
- The voucher number is written on the bill and in the bank narration.
Who holds which record
The secretary usually keeps minutes and correspondence; the treasurer keeps vouchers and bank records. Where an accountant is engaged, decide what they can see and do; treasurer and authorised accountant access covers that split.
Doing this on COOPMAN
On COOPMAN, member requests are assigned and closed with a trail, meetings record minutes and resolutions, and approved documents such as a work order letter issued on the society letterhead are numbered and locked. The ledger records payments, and an accountant can be given scoped finance access. See the society management guide.
This article is general information, not legal advice.
Expense approvals: frequently asked questions
Does every expense need a Board resolution?
Not necessarily. Many by-laws or general body decisions let office-bearers approve small or routine spends up to a limit, with larger ones going to the Board or general body. Check your by-laws, write the limits down, and quote the authority on each voucher.
What about an emergency, like a burst pipe at night?
Do the minimum needed to make things safe, keep the bill and photos, and put the spend before the next Board meeting for ratification. Record why it could not wait. An emergency should not become the usual way large repairs are approved.
Can the treasurer pay on a phone instruction from the secretary?
Only if the instruction is recorded and the secretary has authority for that amount. A short written message quoting the bill and approval, saved with the voucher, is better than a call nobody can later prove.
What should a committee member do if a relative or friend is quoting?
Declare the relationship in writing before the quotations are compared and stay out of the decision. Record the declaration in the minutes so the choice can be defended later.
Is it acceptable to pay contractors in cash?
Keep cash payments small and exceptional. Where cash is used, get a signed receipt from the payee on the voucher, with date and amount. Bank payments leave their own trail and make audit easier.
Sources and review
- West Bengal Co-operative Societies Act 2006, Gazette copy (FAOLEX) faolex.fao.org
- West Bengal Co-operative Societies Rules 2011, notification copy (ICMAI) icmai.in
- Extract of the Act including s.97 (audit) – ICMAI Annexure icmai.in
Facts checked against the sources listed on 3 October 2026.
Next step: read the society management guide.
